1980 02 07
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'Houslng and Re eve opment Aut orlty
Thursday, February 7, 1980
Chanhassen City Hall
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A regular
(HRA) was
following
Niemeyer~
meeting of the Chanhassen Housing and Redevelopment Authority
called to order on February 7, 1980, at 7:30 p.m. The
members were present: Bill Gullickson, Jim Bohn, Mike
Absent was Clifford Whitehill.
MINUTES: Commission Bohn moved to approve the minutes of January 10,
1980. Commissioner Niemeyer seconded. Ayes - All.
Action on other minutes was tabled.
BUILDING/SITE PLANS: Representatives of Kraus Anderson and Bloomberg
Companies noted that a redraft of the building/site plans were presently
being redrafted in accordance with the co~mission action of January
24, 1980. It is anticipated that a copy of the redrafted plans will
be available for the February 21st meeting.
DEVELOPERS AGREEMENT: Arjis pakalns of BRW, reviewed a draft of the
proposed developers agreement. This agreement is in the form of a
"Agreement of Intent" and, although such has been presented to the
developers, they have not had an opportunity to respond. Representatives
of Kraus Anderson/Bloomberg Companies stated that they would prepare
suggested chariges prio~ to February 21st.
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REDEVELOPMENT PLAN: Arjis Paka1ns noted that the
document will be completed and presented on February 21st. In regards
to land uses within the entire tax increment district, a general meeting
should be established between the HRA/Planning Commission/City Council
to insure that such document is in accordance with general city policies
and Planning Commission/City Council planning efforts to date.
Staff was instructed to establish a joint meeting between the three
bodies.
Arjis presented a report concerning the preliminary cost flow
models for the tax increment district including potential costs of
the project as well as new taxes which would be generated as part of
the project. A copy of BRW's report of February 6, 1980, in regards
to the tax increment district financial feasibility, including cash
flow analysis, is referenced and hereby made a part of these minutes.
Commission members generally discussed cost elements included in the
cost flow analysis as well as basis of projecting revenues.
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The City Manager noted his pleasure with the analysis completed to date.
Specifically, the projections have taken the most conservative of all
potential possibilities. The model reflecting solely the tax revenues
which would be generated from the Kraus Anderson developments (excluding
any relocations within the downtown area and excliliding the hotel
complex} would not be financially feasible over a 15 year period (Model A)
However, if the Instant Web facility is relocated within the district
or if the hotel complex becomes a reality, the projections reflect that
public costs would be paid within an approximate 15 year period. The
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February 7, 1980
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original goal of the Manager's had been to see a payoff during
an approximate 10 year period. This would still be a strong possibility
considering that the second model (B) does not include any new
construction resulting from the relocations of the Mobil Station,
Riviera Club, Chanhassen Electric, various businesses within the Hanus
complex, Cenex, Pauly's, Kennys, etc. It additionally does not
include any new developments within the business park. Although it
is the belief of the Manager that each of the two areas should be
independently reviewed in regards to their ability to repay debts
within their own respective areas, it is important to note that this
is one tax increment district. As such, any developments occurring
in the business park (programmed for a much lower incentive program)
would have the effect of lowering the overall number of years of payoff
within the downtown area.
BRW will have additional information available on February 21st.
Adjournment: 10:45 p.m.
Don Ashworth, City Manager
Persons attending the February 7, 1980, meeting:
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Commissioners - As shown.
Dennis Spalla - Kraus Anderson
Bill McRostie - Bloomberg Companies
John Havlik - Property Owner
John Neveaux - City Council
Pat Swenson - City Council
Dale Geving - City Council
Clark Horn - Planning Commission
Don Ashworth, City Manager
Arjis Pakalns - BRW
Al Klingelhutz - Community Facilities Committee